Simplify Your GST Invoicing

1. Who should issue Bill of Supply?

The following registrants should issue Bill of Supply:

A. Composition Dealer

A taxpayer whose turnover is less than Rs 75 lakh can opt for composition scheme. A dealer opting for composition scheme has to deposit tax on their receipts themselves, they are not allowed to collect any tax from their buyers. The GST has to be paid out of pocket by the composition dealer. They cannot charge GST in the invoice.

Thus a composition dealer has to raise a Bill of Supply instead of a Tax Invoice.

The composition dealer has to mention the words ‘composition taxable person not eligible to collect taxes on supplies’ on the Bill of Supply.

B. Exporters

An exporter is also not required to charge GST on their invoice. This is because exports supplies are zero-rated. Hence a taxpayer exporting goods can issue a Bill of Supply in place of a tax invoice.

The dealer has to mention the following in their Bill of Supply-

“Supply Meant For Export On Payment Of IGST”

“Supply Meant For Export Under Bond Or Letter Of Undertaking Without Payment Of IGST”

C. Exempted Goods Supplier

When registered dealer supplies exempt goods or services they are required to issue Bill of Supply.

For example, when a registered taxpayer provides unprocessed agricultural products they have to issue a Bill of Supply instead of a tax invoice.

2. Contents of Bill of Supply

The GST law has specified certain particulars that should be present in a Bill of Supply.

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